The recent approval of Spot ETH ETF clarifies the SEC’s consideration of Ethereum as a commodity, which contradicts its long-standing view of Ethereum as a security. The SEC was reluctant with its prior position before the activities of the current week.
The recent actions of the SEC and the bipartisan approval of FIT21 to provide clear and required regulations strengthen the case in favor of Consensys. So, the company is pleased with all the recent events in the industry.
Where Does Consensys Stand on the Case
Consenys excitedly welcomed the approval of Spot ETH ETF as a step in the right direction, for the brighter future of digital assets. However, the last-minute approval highlights the SEC’s approach to regulating digital assets. No other asset class or industry is exposed to such ‘hasty’ decisions.
On today’s SEC ruling:
— Consensys (@Consensys) May 23, 2024
While Consensys welcomes today’s decision to approve ETH Spot ETFs as a step in the right direction, this seemingly last minute approval is yet another example of the SEC’s troublesome ad hoc approach to digital assets. No other industry, market, or…
Consensys considers such actions to be unfair to the market, unethical use of the law and restricting innovations in space.
The ongoing lawsuit filed by Consenys against the SEC will continue as the team continues to fight for a defined regulatory framework in their case.
The SEC’s regulatory claim of treating Ether as a security would severely impact the usage of Ethereum and other similar blockchains. These impacts will not only be limited to the digital asset space but will also impact future innovation, products and jobs in the US.
Facts Highlighted in Consenys Case
Consensys listed the following points to make their case.
– Ethereum is a global computing platform, not an investment scheme and the supporting Ether is not a security but rather a commodity. The Commodity Futures and Trading Commission (CFTC) has repeatedly confirmed that Ethereum is a commodity.
– The applications that people have utilized to transact Ethereum on their own are not securities brokers, and thus, they cannot be regulated by the SEC.
– The SEC threatens to severely impact America’s position to become the global leader of the next generation of the internet. It will give access to other foreign countries, especially hostile foreign adversaries, to control the development of an economy and promote the evolution of technology and the internet.
